Agency vs In-House Calculator
Compare the true costs of hiring an agency versus building an in-house marketing team.
What you'd pay an agency monthly
Benefits, equipment, space
% of salary for hiring
Time to full productivity
Agency
In-House Team
Agency is More Cost-Effective
You'd save approximately $177,500 per year with an agency. First year savings: $253,125 (including hiring & ramp-up costs).
Annual Cost Breakdown
How to Use This Calculator
Enter your team requirements including roles, salaries, and benefits
Input agency retainer costs or hourly rates for comparison
Add overhead costs like tools, office space, and management time
Review the side-by-side cost comparison and recommendations
Frequently Asked Questions
What hidden costs does the calculator include?
The calculator factors in benefits (typically 25-35% of salary), recruiting costs, training time, management overhead, software licenses, and turnover expenses that often get overlooked in simple salary comparisons.
When does an agency make more financial sense?
Agencies often make sense when you need specialized expertise, flexibility to scale up/down, or when your marketing budget is under $500K annually. The calculator shows the specific break-even point for your situation.
How do I estimate agency costs?
Request quotes from 2-3 agencies for your scope of work. Most agencies offer monthly retainers ranging from $5,000-$50,000 depending on services. The calculator helps compare these against equivalent in-house capabilities.
Should I consider a hybrid model?
Many companies find success with a small internal team handling strategy and day-to-day work while outsourcing specialized projects. The calculator can help model this hybrid approach.
What about quality differences between agency and in-house?
Quality depends on many factors. Agencies bring diverse experience and specialized skills, while in-house teams offer deeper brand knowledge. Consider qualitative factors alongside the cost analysis.
Why Use This Calculator
- Calculate total cost of in-house team including benefits, overhead, and tools
- Compare agency retainer costs against internal team expenses
- Factor in hidden costs like recruiting, training, and turnover
- See break-even points and long-term cost projections
- Make data-driven hiring vs outsourcing decisions
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"The budget breakdown helped us identify where we were overspending. We reallocated 20% of our budget to higher-performing channels."
Marketing Manager, E-commerce Brand